THE BASICS OF BEACONS

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2 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES THE BASICS OF BEACONS BEACON: SIMPLY PUT, IT CONSISTS OF TWO PARTS: A BROADCASTER (BEACON DEVICE) AND A RECEIVER (SMARTPHONE OR WEARABLE). WHAT IS A BEACON? Very much like a lighthouse broadcasts light, a Beacon is a transmitter that broadcasts signals at set intervals so that smart devices that are near in proximity can be disrupted and react accordingly. Beacons utilize Bluetooth Low-Energy (BLE) wireless technology and are ideal for places like airports where precise GPS and Wi-Fi can be intermittent and inaccurate. BLE WHAT S THAT? BLE is a type of Bluetooth technology that is low energy, hence the name- Bluetooth Low Energy. BLE communication comprises of advertisements of small packets of data, which are broadcasted at regular intervals through radio waves.

3 MIGHTYMEDIAGROUP.COM.AU BLE broadcasting is a one-way communication method; it simply advertises its packets of data. These packets of data can then be picked up by smart devices nearby and then be used to trigger things like push messages, app actions, and prompts on a smart device. BLE technology is ideal for contextual and proximity awareness. A beacon s typical broadcast range is between meters. Some places advertise beacons as broadcasting up to 75 meters. They measure that in an ideal setting where the signal will experience nothing being in the way. 30 meters is the most ideal broadcast range and is perfect for location tracking and awareness. The most practical and amongst the smallest are the GEMtot USB beacons, which are powered by a USB port. As the power source is consistent, there is never a risk of signal decline due to decline in battery life. USB Beacons allow for quicker discovery by smartphones and other Bluetooth-enabled devices. IBeacon is Apple s implementation of Bluetooth low-energy (BLE) wireless technology to create a different way of providing location-based information and services to iphones and other ios devices. The ibeacon became relevant when Apple released the ios6 update back in 2014, therefore, ios devices including iphone 4s or later, the ipad (third generation and onwards) ipad mini and ipod touch (fifth generation or later) are also ibeacon enabled. Chances are if you own a smartphone less than

4 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES three years old, your device is compatible with ibeacons, and in itself is a beacon. It is worth noting that the same BLE technology is compatible with Android 4.3 and above. There was once a notion that in order for beacons to talk to smart devices, a mobile application had to be the intermediary. Apps were expensive to development for campaigns, and travel retail brands were not empowered to deploy these types of digital initiatives. This made the use of beacons out of reach for many travel retail brands. The brands had to then depend on stakeholder partners such as airports to somehow create a scenario or opportunity for digital disruption. THANKS TO GOOGLE, THE APP NOTION IS NOW A MYTH! Google's introduction of the Physical Web and open source interaction on the web was its touché to Apple's control and how we accessed information. Google deployed a system that now allows anyone to interact with any device at any time. The Physical Web enables interaction when native apps just aren't practical, such as for travel retail brands or specific seasonal campaigns or activations. Source: GITHUB Google s game change the Physical Web icon where this symbol is displayed, there is a signal being emitted that a smart phone can receive and a URL transmitted, without the requirement of a costly mobile application. Physical web objects require Eddystone BLE Beacons. These beacons broadcast a specific URL and link to a location on the web.

5 MIGHTYMEDIAGROUP.COM.AU An example could be a LACOSTE display poster that transmits a link to the new advertising video, brand page on Facebook, a quick survey, or content page about a new product. BEHIND THE TECH CURTAIN: HOW BEACON & BLE TECHNOLOGY WORK TOGETHER When an ibeacon is broadcasting, it is sending a message or an advertising packet package of data that consists of four main components. This is done using a numerical string of data called a UUID (Universally Unique Identifier): The UUID contains 32 hexadecimal digits, split into 5 groups. A UUID typically looks like this: 3f d6g-55e5-a6h8-9991q6b7c72z The UUID serves as a way to identify a beacon device in terms of manufacturer, application, or owner. It allows an organization to distinguish beacons within its network from all the other beacons sharing the same proximity that are not controlled by the same owners or broadcasters.

10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES Confirming what beacons are and how they work with the Apple ibeacon

ONLINE AND OFFLINE By using beacons in this unique way, airlines, airports, travel retail brands and retailers can

6 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES Confirming what beacons are and how they work with the Apple ibeacon framework, let s explore how BLE technology is being used in the real world CONNECTING THE CUSTOMER JOURNEY DOTS: ONLINE AND OFFLINE By using beacons in this unique way, airlines, airports, travel retail brands and retailers can create contextually relevant and highly personalized shopping experiences for connected travellers. By leveraging this low-tech technology, consumers are able to combine online and offline shopping and brand experiences giving them the best of both worlds. OFFLINE physical location Digital ONLINE attraction Resulting action OFFLINE Diagram 1: The Omni-Channel Journey

7 MIGHTYMEDIAGROUP.COM.AU HOW CAN ibeacons BE USED EFFECTIVELY? IMPLEMENTATION SCENARIOS The scenarios for where ibeacon can be implemented are numerous and only limited to a marketer s creativity. Here are some practical ways to use beacons to enhance customer experience and facilitate m-commerce: Retail: Seduce, inform, retarget and enable m-commerce, the sky is the limit really as beacons can be used throughout the consumer journey to educate and personalize shopping experiences, especially if contextual messages can be targeted through the use of loyalty data. Transportation: As passengers depend on their mobile devices to keep them connected on the move, beacons are extremely useful in airport, bus and train

8 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES stations, and cruise terminals. Passengers in all of these locations would be able to benefit from contextually relevant information to assist in way-finding, distance to gate or lounge, and to alert of potential bottle necks or delays that could occur at security check points. Service Industries: Imagine being in the car park of your local shopping mall. As you near the entrance, your smartphone receives a notification that your favorite sushi train restaurant is offering $3 all you can eat plates between 1pm 3pm, and it just happens to be lunch time. Restaurants and cafes can use beacons much like retail environments. Beacons can be used to greet customers and entice them with offers. Restaurants could also incorporate the use of beacons to distribute information about wait times and even have people sign up for the waiting list directly through a dynamic web page. Home Automation: As more and more household appliances are enabled through the Internet of Things (IoT), beacons could sense your arrival home and open a series of apps that control security, ambient temperature and turn on your favorite itunes playlist. Smart phones can talk to smart houses enabled by Beacons. Education: Beacons can enhance the visitor experiences in museums and exhibits. Instead of scanning a QR code to hear the audio playback, a beacon could prompt your device and deliver links to rich media content that explains what your are viewing in real life. Entertainment: Anywhere there is a crowd, such as sporting venues, there is a great opportunity for beacon implementation to enhance visitor experience, sell merchandise, or deliver that strategic offer of 2 for 1 hotdogs when you are 20 meters from the concession stand. Theme Parks: Beacons could also be very useful at theme parks to help guests way-find to specific rides and attractions and customize a day based on the type of tickets purchased enabled through an application. Beacons could alert thrill seekers of wait times for rides, closures, minimum height requirements, and the location of mascots available for photo opportunities. Trade Events like TFWA: Beacons can even be used to create interactive games such as scavenger hunts, promote trade floor happenings and

9 MIGHTYMEDIAGROUP.COM.AU serendipity, and create personalized experiences based on previously articulated interests. (vendor, supplier, media, visitor). Beacons could also be used to remind conference attendees of micro-events and deliver links to satisfaction surveys, or prompt registration for future events. Beacons could also promote future events based on where the delegate is in the conference. If a delegate is entering a session on Governance, it could push a notification of a future training workshop and a link to enroll. AND FINALLY 10 MIND-BLOWING CASE STUDIES 1. ACCOLADE WINES HARDYS TRAVEL RETAIL SYDNEY AIRPORT Accolade Wines hired Mighty Media Group to help deploy an omni-channel digital activation to coincide with a category stage (feature tasting stand) inside the new Heinemann Tax & Duty Free Store airside at Sydney International Airport. Mighty Media Group ran digital display ads and short video ads on Twitter, YouTube, Facebook, Instagram and Chinese social website and travel related platforms to raise awareness. We then leveraged a mobile microsite to articulate a sweepstakes offer

10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES and invited interested wine-drinking travelers to download an invitation in the form of a pass that was then saved to their mobile wallets in

10 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES and invited interested wine-drinking travelers to download an invitation in the form of a pass that was then saved to their mobile wallets in smartphones. Mighty Media Group then placed beacons just after the airport customs and security checkpoints where travelers with the pass would be alerted that the sampling booth was near by through a locked screen notification, WITHOUT A MOBILE APPLICATION! The beacons delivered locked screen messages in English and Chinese respective to the pass that was downloaded. MMG set the ibeacons to remind consumers of the offline retail purchase location. MMG also sent GPS trigger messages isolating points along the consumer journey through the airport and included contextually relevant message to give engaged connected travelers surprise and delight, wishing them well as they arrived in the airport, soothing them after customs and security, and finally reminding them of the location of the tasting bar based on where they were standing in the dutyfree store, after customs. This increased unit sales nearly fourfold. Source: Mighty Media Group

11 MIGHTYMEDIAGROUP.COM.AU 2. SXSW 2016 In 2014, SXSW - One of the hottest interactive, film and music festivals in the world, first deployed beacon technology at their Austin based convergence for geeks and it was very well received. This was before the iwatch had launched so interaction was completely beacon and application centric. In March 2016, the official SXSW mobile application was again powered by ibeacons this year but this year delivered much richer engagement. SXSW had clearly moved from experimental to focused on their beacon strategy to engage conference attendees. SXSW-ers who downloaded the ios version of the SXSW app saw significantly improved registration experiences by getting an alert containing their Registration QuickCode when they entered inside the Austin Convention Centre and in proximity of the registration areas. They also placed 50+ beacons at various

10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES event venues in and around the Austin Convention Center allowing SXSW to welcome attendees to sessions, encourage them to join discussions about a

12 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES event venues in and around the Austin Convention Center allowing SXSW to welcome attendees to sessions, encourage them to join discussions about a session within the SXSW app, and to see which other attendees were at that session and view tweets related to that session. Source: Umbel 3. LORD & TAYLOR HUDSON S BAY Just as the iwatch was being released, the Hudson s Bay Company rolled out beacons at 130 Lord & Taylor and The Bay stores in the U.S. and Canada. They deployed this using Swirl, an ibeacon marketing platform that integrates with Motorola Solutions MPact platform. This was not a great stretch for the retailer as it was already being used by brands like Timberland and Kenneth Cole for tailored instore experiences. L&T installed beacons in merchandising areas to send shoppers location-aware, targeted notifications, branded content and personalized offers.

13 MIGHTYMEDIAGROUP.COM.AU Hudson s Bay Company was one of the first major department stores to do this in such a large number of stores across North America. Source: Umbel 4. HILLSHIRE BRANDS GROCERY STORE Hillshire Brands implemented ibeacons in 10 U.S. cities to help them track a shopper s journey through the aisles of a grocery store to then send discount coupons or ads for their craft sausages when the shopper approached that section of the store. The ads and coupons were delivered via apps like Epicurious (a recipe service) and Hillshire says shoppers were 20 times more likely to buy its American Craft sausages when they received such tailored communications. Source: Umbel

14 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES 5. JAPAN AIRLINES TOKYO AIRPORT TO IMPROVE BUSINESS PROCESSES AND OPERATIONAL EFFICIENCY Japan Airlines started an ibeacon trial in 2014 at Tokyo s Haneda Airport to improve efficiency in their operation and manage staff more effectively. Gate agents, counter check in staff, and handlers were equipped with smart watches allowing the company to locate staff members and assign specific tasks to them. Their ground staff received updates on relevant information and flight status updates in real time. The airline used beacon technology to actually improve business processes instead of using it to send offers and product info to customers. Source: Umbel

15 MIGHTYMEDIAGROUP.COM.AU CLICK THE VIDEO TO WATCH 6. NIVEA USES IBEACONS TO HELP PARENTS KEEP TRACK OF THEIR CHILDREN AT THE BEACH Probably the cleverest use of beacons for safety is this terrific activation by skin care brand Nivea. Nivea launched their StickNFind application to help parents keep track of their children when they re at the beach. Subscribers of Veja Rio magazine in Brazil were included an ad and a detachable water resistant bracelet with the magazine. The activation was both simple and elegant. Each bracelet contained a small beacon. By wrapping the water-resistant bracelet around a child s arm and downloading a Nivea app, parents could define a safe area at the beach for the child. When a child wanders outside the safe zone, an alarm would go off to alert parents on their smartphone. Source: Umbel

accelerates the check-in process for frequent guests, and lets housekeeping know when guests have departed their rooms.

16 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES WATCH HERE 7. STARWOOD HOTELS KEYLESS HOTEL ROOMS Starwood Hotels & Resorts is running an ibeacon trial in 30 of its hotels and resorts that helps concierges greet guests who arrive by name, accelerates the check-in process for frequent guests, and lets housekeeping know when guests have departed their rooms. Further, in a new one-of-its-kind pilot program, Starwood guests at two of their U.S. hotels will be able to walk into a hotel, avoid the check-in process, go straight to their room and open the room door via keyless entry activated on their smartphones. For an activation of this capacity (m-commerce and mobile payment), the guest must have a partner app installed and

17 MIGHTYMEDIAGROUP.COM.AU turned on. As each mobile phone has a unique IP and identifier, the app and guest room became configured and the room could be accessed and opened by simply tapping or gesturing with their device once they arrive at the door. Source: Umbel 8. AMERICAN AIRLINES WAYFINDING AT DFW In 2014, Dallas Fort Worth Airport (DFW) was one of the first airports to adopt a beacon strategy in partnership with American Airlines. A small group of customers who have the American Airlines app got notifications to help them navigate the airport better and have a better access to information including information like distance to gates, boarding times and the closest security check lines.

18 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES M-Commerce Facts: 85 of the top 100 Brick & Mortar retailers are planning to adopt beacon technology by the end of Business Insider expects beacons to have a direct influence over $44 billion in US retail sales in The mobile web will drive m-commerce, not apps. 8 out of 10 minutes of app time is spent solely on an individual s top 3 apps (Facebook, Instagram, WhatsApp, WeChat?) M-commerce is expected to grow at a rate 300% faster than traditional e- commerce. Source: PRNewsWire, MooveWeb.com Why? 65% of our passengers at DFW arrive at the gate early because they are often nervous about whether they are at the right gate. Phillip Easter, Director of Mobile Apps and Wearables (AA) They re sitting there early, so with the ibeacon technology I can tell them what s around. This will make it easier, it will be less hassle, less stress and allow customers to explore. I can let them know if they are at the right gate or the wrong gate, and how much time it will take to get to their departing gate. Imagine the impact of less stress on dutyfree shopping?

MIGHTYMEDIAGROUP.COM.AU 9. EVENTS: MAJOR LEAGUE BASEBALL (MLB) In March 2014, Major League Baseball rolled out ibeacons in 28 of its 30 ballparks across the U.S. and saw fan check-ins more than double this season after they began pushing merchandise coupons and seat upgrades via their app, using Bluetooth.

19 MIGHTYMEDIAGROUP.COM.AU 9. EVENTS: MAJOR LEAGUE BASEBALL (MLB) In March 2014, Major League Baseball rolled out ibeacons in 28 of its 30 ballparks across the U.S. and saw fan check-ins more than double this season after they began pushing merchandise coupons and seat upgrades via their app, using Bluetooth. This is a true m-commerce play. IPhone owners who downloaded the MLB application could check-in at games to receive special offers and content.

20 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES ibeacons were strategically placed at all of the fan entry and exit points of the ballparks. The number of beacons varies by stadium, depending on the number of entry and exit points. Their application works on both ios and Android devices and also offers venue maps, concession stand info and video clips of game replays. 10. VIRGIN ATLANTIC LONDON S HEATHROW AIRPORT FOR PREMIUM PASSENGERS Touted as an innovator in the airline industry, Virgin Atlantic began an ibeacon trial in the Upper Class Wing at London s Heathrow Airport in May Virgin s premium passengers were able to receive personalized notifications and offers via their iphones. At the beginning of the trial, Virgin used beacons to alert customers to have their electronic boarding passes ready when they were close to a private security check, and to send tailored offers like commission-free currency exchange deals to passengers in the departures section of the airport. Virgin also used beacon tech to let passengers know about inflight entertainment specials before they boarded the plane, and

21 MIGHTYMEDIAGROUP.COM.AU to let their staff know when temperatures dropped on outdoor decks of their airport lounges so they could give blankets to passengers. Source: ibeaconnews CONCLUSION: In 2014, Mighty Media Group presented to key Travel Retail, Brand and Retail stakeholders at the Trinity Forum in Taipei a keynote titled WTF That s the Future Disruption in Travel. In this lecture, we predicted that consumers would become more comfortable and sophisticated with m- commerce, and readily adopt the convenience, immediacy and serendipity that personalization would provide them. We further predicted that beacons would be widely deployed in retail scenarios, and identified that there was a genuine opportunity for brands to leverage on mobility for consumer engagement. With the Google release of the Physical Web, allowing consumers to merely tap to connect, the expensive intermediary the mobile application is now no longer required. The Apple Wallet, a repository for electronic boarding passes widely accepted today by travelers, offers a treasure trove of possibilities to connect to traveler devices and push notifications and offers in real time, without an application. Having an M-Commerce strategy enabled by beacons is now accessible and affordable. The time is now!

10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES ABOUT MIGHTY MEDIA GROUP PTY LTD Mighty Media Group (MMG) is a full service digital, mobile and social agency specializing in developing web and mobile

Established in 2004, we are strategists, customer experience architects, designers and developers who are incredibly passionate about the mobile landscape.

22 10 MINDBLOWING M-COMMERCE ibeacon CASE STUDIES ABOUT MIGHTY MEDIA GROUP PTY LTD Mighty Media Group (MMG) is a full service digital, mobile and social agency specializing in developing web and mobile applications that positively disrupt connected travelers, from WeChat games to omnichannel campaigns that span online, on mobile, and to the Zero Moment of Truth the retail sales floor. Established in 2004, we are strategists, customer experience architects, designers and developers who are incredibly passionate about the mobile landscape. We can help you optimize your retail space, attract new customers, and drive revenue. We re an award winning agency, and humble but proud to have worked with great companies including Club Med ESAP, Sydney Airport, Accolade Wines/Hardys, JR/DutyFree, Socatec, Cebu Pacific Air, and Oakwood Asia Pacific Hotels. We re highly regarded in the travel sector. If mobile seemed out of reach because of the app myth, or if you are planning a campaign, product launch or activation, talk to us.

23 MIGHTYMEDIAGROUP.COM.AU THANK YOU. FOR MORE INFORMATION CONTACT: Stephenie Rodriguez CEO on Twitter

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